Project C - OGScapitalCompany has distributed personal care products in India. The Company is...

Business plan

XXXXX

Strictly private and confidential

Project C

XXXXX

Email: XXXX

Business plan – Project C Private and Confidential

Section Page

Disclaimer 2

Executive Summary 4

Market Research 7

Business Model 19

Marketing Plan 30

Financial Projections 37

Founder Profile 43

Use of Proceeds 45

2

Disclaimer


Disclaimer

3

• This presentation has been prepared exclusively for the benefit and internal use of a qualified sophisticated global financier to whom it is directly addressed and

delivered. This presentation is for discussion purposes only and is incomplete without reference to, and should be viewed solely in conjunction with, the oral

briefing provided by XXXXX. Neither this presentation nor any of its contents may be used for any other purpose without the prior written consent of XXXXX.

• The information in this presentation is based upon forecasted numbers provided in industry literature and our best estimates. These projections and estimations

reflect prevailing conditions and our views as of this date, all of which are accordingly subject to change.

• In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available

from public and private sources which were provided to us or which were otherwise reviewed by us. In addition, our analyses do not claim to be appraisals of the

assets, or the valuation of any entity. XXXXX makes no representations as to the actual benefits which may be received in connection with a transaction nor the

legal, tax or accounting effects of consummating a transaction.

• A number of statements referenced in this presentation that have been granted, are forward-looking statements, and any statements that express or involve

discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, and goals, assumption of future events or performance are not

statements of historical fact and may be "forward-looking statements”.

• Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and

uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward-looking statements in this presentation may

be identified through the use of words such as "expects,” "will,” "anticipates,” "estimates,” "believes,” or statements indicating certain actions "may,” "could,” or

"might" occur. Any person or entity seeking to make an investment in the company should not rely on the information set forth in this business plan as complete.

• Any person or entity seeking to make an investment in the company should not rely on the information set forth in this business plan as complete. There exists

substantial information with respect to the company, its business and its future prospects which are not set forth in the business plan and there exist a substantial

number of risks associated with an investment in the company which are not set forth in this business plan.

• Any person or entity considering making an investment in the company must ensure that they avail themselves of all other information relating to the company, its

business, and its financial projections, as well as all other information deemed necessary or desirable by such prospective, prior to any such investor making an

investment in the company.

• Any prospective investors shall be required to represent to the company that, prior to making such investment, they have received from the company all

information deemed necessary or desirable by them with respect to such investment and that such investor did not rely on any information set forth in this

business plan in making any such investment.

• By accepting delivery of this plan, the recipient agrees to return this copy to the corporation at the address listed below if requested.

• Do not copy, fax, reproduce or distribute without written permission from XXXXX.

Disclaimer


Section Page

Disclaimer 2

Executive Summary 4

Market Research 7

Business Model 19

Marketing Plan 30


Founder Profile 43

Use of Proceeds 45

4

Executive Summary


Project C is an existing business located in New Delhi, India. Since 2009, the Company has distributed personal care products in India. The

Company is planning a 2015 expansion into the US market.

5

Market analysis

• To become a reliable exporter/importer and wholesaler of personal

care products in Dallas and New Delhi

• To provide high-quality personal care products in both markets

• To provide particularly cost-efficient solutions in the US market

• To hire 1 US worker in year 1

• To open US retail store in year 1

• To export personal care products produced in USA

• To expand export market to China and Taiwan in year 3

• To build a network of reliable manufacturers, wholesalers and

distributors in USA

• To achieve gross revenue – $1.9m in year 5

StrengthsGoals

• Financial resources of the director

• Director’s extensive industry experience

• Director’s MBA will support business development

• Ability to provide products that are cost-effective for customers in ways that current

competitors’ products are not

• Existing Indian distribution network

• Direct contacts with Indian authorities for licenses

• Attractively located proposed location

• Innovative marketing plan

Business idea

• Vrinda Martketing is an existing business located in New Delhi, India. Since 2009, theCompany has distributed personal care products in India. The Company is planning a 2015expansion into the US market. Products include detergent powder, soaps, liquids, edible salt,edible oils and textiles.

• The Company’s planned expansion will include the opening of a US Company Project C inMarch 2015. The US Company will export, import, distribute and retail various personal careproducts in USA.

• Website: XXXXX

• Region of US Company registration: Dallas, Texas

• Geographical focus: USA – Dallas, Texas; India – New Delhi

• Target customers: Personal care product customers of all ages in Dallas, Texas and NewDelhi, India

• Managing director of US Company: XXXXX

Executive Summary

0%

2%

4%

6%

8%

10%

12%

14%

16%

2009 2010 2011 2012 2013

US Exports as a share of GDP, %


XXXXX will act as the Managing Director of the US Company Project C

6

Financials

• One new employment in year 1 and at least 3 employment positions by

year 4.

• Develops the personal care products industry in the US

• Stimulates business activity in supplementary industries, such as

manufacturing, logistics, marketing, etc.

• Exporting American-made personal care products to foreign markets

supports American manufacturers and distributors

• Introduces Indian lines of high-quality personal care products to the US

market for the first time

• $250k investment in the economy

Benefits for the US economy

sExecutive Summary

Initial investments, £

Item Amount

Refurbishment of the leased premises 60,000

Purchases of goods 50,000

Investments in working capital 90,000

Total: 200,000

Source: Management information

Initial investments

Initial investments, $

Item Amount


Acquistion of store 150,000

Other working capital items 10,000

Total: 250,000


Projected Profit and Loss account

$ Year 1 Year 2 Year 3 Year 4 Year 5

Revenue 730,000 876,500 1,090,495 1,411,054 1,900,586

Cost of sales (520,000) (627,950) (786,387) (1,024,602) (1,389,392)

Operating expenses (96,000) (128,740) (161,611) (182,618) (215,771)

EBITDA 114,000 119,810 142,498 203,834 295,423

Net profit/(loss) 69,300 73,367 89,249 132,184 196,296

EBITDA margin, % 16% 14% 13% 14% 16%

Net profit margin, % 9% 8% 8% 9% 10%

Source management information

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Year 1 Year 2 Year 3 Year 4 Year 5

Sales structure by regions, %

USA India China Taiwan

Source: Management inf ormation


Section Page

Disclaimer 2

Executive Summary 4

Market Research 7

Business Model 19

Marketing Plan 30


Founder Profile 43

Use of Proceeds 45

7

Market Research


A strong exporting sector is in our national interest

• “As you know, expanding trade – specifically the expansion of

U.S. exports—is one of my top priorities as Secretary. The United

States may have a large trade imbalance with the rest of the

world right now, but the answer is not to reduce our imports. It’s

to make and sell more products and services that the rest of the

world wants to buy. The bottom line is that so long as we’re all

operating on a level playing field, everyone benefits from opening

up and competing.”

8

Market Research General Overview

• In March 2010, President Obama announced The National Export

Initiative (NEI).

• It is an initiative to improve conditions that directly affect the private

sector's ability to export. The NEI will help meet the Administration's

goal of doubling exports over the next 5 years to $3 trillion by working to

remove trade barriers abroad, by helping firms – especially small

businesses – overcome the hurdles to entering new export markets by

assisting with financing and, in general, by pursuing a Government-wide

approach to export advocacy abroad.

• The National Export Initiative will combine trade advocacy with export

control reform to increase exports and the number of companies

exporting goods to more than one market, as only 58 percent of U.S.

exporters ship goods exclusively to one country and many companies

lack the resources they need to identify new export markets and

opportunities.

• The US Government will increase funding for trade promotion, including

an additional $70 million for the International Trade Administration and

$50 million for the Department of Agriculture in next year’s budget.

• The ITA plans to hire more than 300 trade experts to promote U.S.

companies overseas and help more than 23,000 clients begin or grow

their export sales in 2011.

• The export initiative will focus on promoting trade, getting financing to

small exporters and stricter enforcement of international laws and

agreements to fight counterfeiting and ensure that U.S. companies have

fair access to overseas markets. As part of the initiative, the Export-

Import Bank will increase financing available to small businesses by $2

billion over the next year, bringing the total to $6 billion.

Secretary of Commerce Gary Locke

Remarks at the National Council of the Americas in Washington, D.C.


The National Export Initiative will help meet the Administration's goal of doubling exports to $4.6 trillion over the next 5 years

Benefits of Trade

• The United States is the world's largest economy and the largest

exporter and importer. Trade is critical to America's prosperity,

fueling economic growth, supporting good jobs at home, raising

living standards and helping Americans provide for their families

with affordable goods and services.

• The U.S. is the world's second largest trading nation, with exports

of goods and services over $2.3 trillion in 2013

• US manufacturing exports support nearly six million jobs

including one in six manufacturing jobs

• US agricultural exports support 808,000 jobs

• US jobs supported by export goods pay 13-18 percent more than

the US national average

• For the first time, exports exceeded 13.5 percent of U.S. GDP in

2014

Trade expansion benefits families and businesses by:

• Supporting more productive, higher-paying jobs in our export

sectors

• Expanding the variety of products for purchase by consumers and

business

• Encouraging investment and rapid economic growth

9

Market Research Worldwide

• Trade keeps our economy open, dynamic, and competitive, and helps

ensure that America continues to be the best place in the world to do

business.

Trade a Vital part of the Global Economy

• Globally, trade accounts for more than 60% of gross domestic product

(GDP).

• Trade volume growth typically outpaces real GDP growth, and is

expected to do so over the next five years.

• The U.S. is the the second largest trader globally in terms of

merchandise.

(11)

(6)

(1)

4

9

Percentage Change in World Trade and Output, % change from previous year

Change in GDP Change in Total Trade Volume

Source: IMF World Economic Outlook; WTO International Trade Statistics; Bureau of Economic Analysis, U.S. Department of

Commerce


U.S. exports reached a record $2.3 trillion in 2013, up 2.9% from 2012 and 44.0% from 2009, when the global crisis caused a

significant worldwide drop in exports

U.S. Trade in 2013

• Total trade (exports and imports combined) accounted for 30%

of U.S. GDP in 2013.

• U.S. exports totaled a record $2.3 trillion in 2013, up 2.9%

from 2012 and 44.0% from 2009, when the global crisis

caused a significant worldwide drop in exports.

• In 2013, exports were up $63.7 billion from 2012, with goods

exports increasing by $31.1 billion and services exports

increasing by $32.6 billion.

• The U.S. trade balance improved by $61.2 billion from 2012 to

2013, driven by the increase in both goods and services

exports and a drop in goods imports.

10

Market Research US Trade

• Historically, exports have grown as a share of U.S. GDP. However, in

2013 exports contributed to 13.5% of U.S. GDP, a slight drop from

2012. That year, increased domestic investment and reduced goods

imports played a greater role in U.S. GDP.

-

500

1,000

1,500

2,000

2,500

Top merchandise exporters in 2013, $billions


Commerce

0

500

1000

1500

2000

2500

3000

U.S. Trade in Goods and Services, $billions

Total Imports Total Exports


Commerce


Exports of goods and services supported 11.3 million American jobs in 2013, an increase of 1.6 million since 2009

• Trade in goods drives the majority of both exporting and

importing activity.

11

Market Research Statistics

0%

2%

4%

6%

8%

10%

12%

14%

16%

2009 2010 2011 2012 2013

US Exports as a share of GDP, %

30%

70%

Services Goods

17%

83%

Services Goods

Trade Supports U.S. Jobs

• Exports of goods and services supported 11.3 million American jobs in

2013, an increase of 1.6 million since 2009.

• In 2013, every billion dollars of U.S. exports supported nearly 5,600

jobs.

• Nearly 305,000 U.S. companies exported goods in 2012 (latest data

available), a record-high. Small- and medium-sized exporters (SMEs)

accounted for 98% of exporters and 33% of the known export value.

Export Import

5.4

5.6

5.8

6.0

6.2

6.4

6.6

6.8

7.0

7.2

2009 2010 2011 2012 2013

Millions of Jobs Supported by Exports


Commerce

930,283

449,400

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

Large companies SMEs

5,872

297,995

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Large companies SMEs

2012 Export Value by Company Size 2012 Number of Exporters, by Company Size


Total trade in U.S. goods in 2013 was $3.8 trillion, up 47% from 2009

• 16% of SMEs and 55% of large company exporters in 2012

exported to five or more countries.

• Companies that exported to five or more countries accounted for

88.6% of the known export value.

Merchandise Trade Highlights

• Total trade in U.S. goods in 2013 was $3.8 trillion, up 47% from

2009.

• Manufactured goods accounted for 87% of U.S. merchandise

exports and 81% of merchandise imports in 2013.

• Goods imports fell by nearly $8 billion in 2013, the first time they

have declined since 2009. Meanwhile, goods exports rose by

$33.9 billion, resulting in a $41.9 billion improvement in the trade

deficit.

•

12

Market Research Statistics

• Transportation equipment was the dominant export category in 2013,

totaling $258.3 billion, or 16.3% of total goods exports.

• Transportation also showed the largest dollar growth among goods

exports in 2013, increasing by $16.9 billion or 7.0% from 2012. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

SMEs

Large companies

2012 Number of Partner Countries, by Share of Exporting Companies, %

1 market 2-4 markets 5-9 markets 10-24 markets 25-49 markets 50+ markets

-

500

1,000

1,500

2,000

2,500

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

US Merchandise Trade, $billions

Goods Imports Goods Exports

Merchandise Exports, 2013

All other merchandise Petroleum coal products

Machinery Chemicals

Computer & Electronic Products Transportation Equipment

Merchandise Imports, 2013

All other merchandise Petroleum coal products

Machinery Chemicals

Computer & Electronic Products Transportation Equipment


Total employment captured in government statistics associated with the personal care products industry amounted to almost 2.8

million in 2013 (1.6 percent of total U.S. employment)

Top Export Markets in 2013

• U.S. exports span more than 230 destinations, with Canada and

Mexico accounting for more than one-third of the total.

• Canada was the top American export market in 2013 ($301.6

billion), followed by Mexico ($226.1 billion), China ($121.7 billion),

Japan ($65.2 billion), and Germany ($47.4 billion). Among top

markets, China showed the highest dollar growth compared to

2012, up over $11 billion.

• Of markets receiving more than $500 million in U.S. goods

exports in 2013, potential TPP partner Brunei showed the fastest

growth in terms of percentage change, up 254 percent compared

to the previous year.

• While a smaller share of overall trade, U.S. goods exports to

markets in South and Central America have shown the most

rapid growth since 2009, up nearly 77%. The trade surplus with

this region was a record high in 2013.

13

Market ResearchUS Personal Care

Products

Personal care products

Market overview

•Total employment captured in government statistics associated with the

personal care products industry amounted to almost 2.8 million jobs in

2013 (1.6 percent of total U.S. employment):

•The personal care products industry directly accounted for almost 1.3

million jobs, or over 0.7 percent of total U.S. employment,

•Employment in other industries indirectly attributable to or induced by

activity in the personal care products industry was almost 1.5 million, or

over 0.8 percent of total U.S. employment.

•The Direct Sellers Association (DSA) estimates that 15 million individuals

were involved in direct selling in 2013, but federal statistics for relevant

NAICS codes only show employment of approximately 800,000 individuals,

most of whom are independent contractors.

Top Export Markets

$ billions

Canada 301

EU 262

Mexico 226

China 121

Japan 65

Brazil 44

Hong Kong 42

Korea 41

Songapore 31

Sw itzeland 27

Australia 26

Taiw an 25

UAE 24

India 22

Saudi Arabia 19

Source: IM F

Item Am ount

Percent

o f U.S.

Tota l

Contr ibution to GDP ($ millions ) $188,842 1.4%

Direct $68,334 0.5%

Indirect and Induced $120,509 0.9%

Labor Income ($ millions ) $109,385 1.20%

Direct $36,992 0.40%

Indirect and Induced $72,393 0.8%

Taxes ($ millions ) $50,874 NA

Direct $18,945 NA

Indirect and Induced $31,929 NA

Employment 2,773.820 1.6%

Direct 1,316,610 0.7%

Indirect and Induced 1,457,210 0.8%

Source: PWC

Total Contribution of the Personal Care Products Industry to

the U.S. Economy


The wholesale, retail, and transportation segments that distribute manufactured personal care products directly accounted for

431,580 jobs, $16.9 billion in labor income, and $24.9 billion in contribution to GDP.

• Other data from the DSA reveal that sales of personal care

products represented 21.5 percent of total direct sales in 2013. If

a similar share of direct sellers promoted personal care products,

3.2 million individuals sold personal care products as direct

sellers in 2012. Less than 10 percent of these individuals appear

in government statistics.

• Total labor income associated with the personal care products

industry amounted to $110 billion, which includes wages and

salaries, other employee benefits, and proprietors' income.

Across direct, indirect, and induced employment, labor income

averaged approximately $39,600 per job.

• The contribution to GDP attributable to the personal care

products industry from direct, indirect, and induced activity was

$189 billion.

14

Market ResearchUS Personal Care

Products

• This combined economic activity generated $51 billion in tax payments

to federal, state, and local governments.

• The manufacturing segment indirectly supported another 553,500 jobs,

$30 billion in additional labor income, and almost $49 billion in additional

contribution to GDP. Overall, manufacturing was responsible for

approximately 22 percent of the industry's total employment

contribution, 32 percent of total labor income contribution, and 37

percent of total contribution to GDP.

• The wholesale, retail, and transportation segments that distribute

manufactured personal care products directly accounted for 431,580

jobs, $16.9 billion in labor income, and $24.9 billion in contribution to

GDP. Including the indirect and induced activity, the distribution

segment accounted for 873,230 jobs, $37.9 billion in labor income, and

$60.0 billion in contribution to GDP.

Direct

Indirect

and

Induced

Total Direct

Indirect

and

Induced

Direct Direct

Indirect

and

Induced

Total

Manufacturing Segments

325610 Soap and cleaning compound

manufacturing

7,330 77,210 84,540 1 4 5 3 7 10

325620 Toilet preparation manufacturing 54,090 476,330 530,420 5 26 30 18 42 59

Total M anufacturing 61,420 553,540 614,960 6 30 36 21 49 69

Distribution Segments

42 Wholesale trade 51,000 106,180 157,180 4 5 9 6 8 15

44-45 Retail trade 375,670 309,660 685,330 13 15 27 18 25 43

48 Transportation 9,830 22,580 32,410 1 1 2 1 2 3

Total Distribution 436,500 438,420 874,920 17 21 38 25 35 60

Services Segment

8121 Personal care services 818,690 465,250 1,283,940 15 21 36 23 37 60

Total 1,316,610 1,457,210 2,773,820 S37.0 72 109 68 121 189

Source: PWC

NAICS Originating Industry

Labor Income

Economic Activity Attributable to the Personal Care Products Industry by Segment, (Dollar amounts in billions)

Total Employment Contribution to GDP


The Indian FMCG sector, with a market size of US$42 billion in 2013, constitutes 2.15 percent of India’s GDP

• Distribution represented 32 percent, 35 percent, and 32 percent,

respectively, of total employment, labor income, and contribution

to GDP directly and indirectly attributable to the personal care

product industry.

• The services segment of the personal care products industry

directly accounted for 819,690 jobs, $14.8 billion in labor income,

and $22.6 billion in contribution to GDP.

• Including indirect and induced effects, the services segment

accounted for 1.3 million jobs, $36.2 billion in labor income, and

$59.6 billion in contribution to GDP. Services represented 46

percent, 33 percent, and 32 percent, respectively, of the personal

care product industry's employment, labor income, and

contribution to GDP.

• Measures of employment in the industry from other sources

suggest the federal government figures used in this report could

exclude certain individuals. For example, the number of

cosmetologists and nail technician licenses issued by state

governments amounted to 2.18 million in 2007. If each of the

individuals holding these licenses worked in a salon, the personal

care services employment figures would be significantly larger.

India

FMCG market overview

• The Indian Fast-Moving Consumer Goods (FMCG) sector, with a

market size of US$42 billion in 2013, constitutes 2.15 percent of

India’s GDP.

• The industry is poised to grow between 10 to 12 percent annually.

• A well-established distribution network spread across six million

retail outlets (including two million in 5,160 towns and four million

in 627,000 villages) low penetration levels, low operating costs

and intense competition between the organized and unorganized

segments are key characteristics of this sector.

15

Market Research FMCG in India

0

10

20

30

40

50

60

70

80

2008 2013 2018P

Market size, $billion

Source: GST

• India is among the world's youngest nations, with a

median age of 25 years as compared to 43 in Japan

and 36 in the US. This, coupled with a large

population and rapidly evolving consumer

preferences, has translated into a large market

opportunity for FMCG players.

Large and still-growing youth demographic

• Real estate development in the country, such as the

construction of shopping malls and hypermarkets, are

opening up new business channels for FMCG

companies.

Emergence of organized retail

business

• Indian cities are expected to add 379 million people to

the consumer base for FMCG companies, as the

urbanization rate is expected to increase from the

current 30 to 45 percent in the next 40 years.

Growing urbanization

• According to recent estimates, household income in

the top 20 boom cities in India is projected to grow at

10 percent annually over the next eight years.

Increasing levels of disposable income


22% of the FMCG market in India relates to personal care

Market analysis

Organized retail —changing industry dynamics

• The Indian retail market size is estimated at US$350.2 billion and

is projected to grow at 13 percent per annum to reach US$ 590

billion by 2016.

• The current share of organized retail is estimated to be 4 to 5

percent and is expected to increase by 14 to18 percent by 2020.

• Organized retail has created new channels for FMCG players

through diverse retail formats such as department stores,

hypermarkets, supermarkets and specialty stores.

• With organized retailing emerging in a major way across the

country, FMCG companies’ revenues are expected to surge in

the coming years.

Rural market —the new growth frontier

• Rural India accounts for close to one-third of the country’s total

consumption. Robust consumption in the rural economy is one of

the key drivers of India’s sustained growth.

• FMCG companies are devising exclusive rural marketing

strategies to tap the rural consumer base.

• A large number of FMCG companies derive a significant

proportion of their overall sales from outside the top few hundred

towns/cities, which reflects the growing economic importance of

India's rural consumer base.

16


Market segments

•Food products is the largest consumption category in India, accounting for

nearly 21 percent of the country’s GDP.

•Some of the leading players in this segment include Britannia Industries

Ltd, Dabur India Ltd, GlaxoSmithKline Consumer Healthcare India Ltd and

Gujarat Cooperative Milk Marketing Federation (GCMMF).

Company Category

% sales

from rural

markets

Hindustan Unilever Ltd Household products 45

Dabur India Ltd Personal products 40

Indian FMCG market segments, %

Baby care Fabric care Food products Hair care

Household OTC products Others Personal careSource: Dabur


As more and more Indian companies go global, they are focusing more on overseas markets such as the US, the UK, the UAE, Sri

Lanka, Bangladesh, Thailand, Afghanistan, South Africa and Mauritius

Export potential

• Globally, India is recognized as a manufacturing base that is cost-

effective while retaining high quality standards.

• As more and more Indian companies go global, they are focusing

more on overseas markets such as the US, the UK, the UAE, Sri

Lanka, Bangladesh, Thailand, Afghanistan, South Africa and

Mauritius either through exports or the establishment of their own

foreign subsidiaries.

• Multi-National Corporations (MNCs) in India have also started

supporting their global supply chain requirements by serving as

cost-effective sourcing bases.

17


Exports

•Skin care products —

Arabia, Malaysia and

Sri Lanka

•Oral —Europe

•Tea —Europe

•Three-in-one tea

premix —Arabia

•Culinary products such

as soups and jams

•Marine products

•Rice —the Gulf

Exports

•Guar Gum —the UK

and the US

•Vatika Hair Oil —the

Middle East and North

Africa (MENA) region

•Dabur Vatika Naturals

styling hair cream —

MENA region

•The company also has

a private label business

in the US and the UK

• Godrej Consumer

Products Ltd (GCPL)

currently exports to

33 countries,

including the UAE,

Sri Lanka,

Bangladesh,

Thailand,

Afghanistan, South

Africa and Mauritius

Key players

Food Personal care Home care Healthcare

Britannia Industries Ltd 648.4 Tiger, Good Day, Marie

Gold

Colgate Palmolive India Ltd 366.3 Colgate, Palmolive Axion, Dish

Wash

Dabur India Ltd 590.4 Real, Activ, Hommade Dabur Amla, Vatika Dazzil,

Odomos,

Odonil

Dabur

Chyaw anprash ,

Hajmola

Em ami Ltd 155.7 Sonachandi

Chyaw anprash

Boroplus, Fair and

Handsome, Navratna

Cool Talc

GlaxoSmithKline Consumer Healthcare India Ltd 354.5 Horlicks, Boost, Maltova Eno, lodex

Godrej Consumer Products Ltd (GCPL) 234.7 Cinthol, Color Soft Ezee

Gujarat Cooperative Milk Marketing Federation

(GCMMF)

1,398.2 Amul

Hindustan Unilever Ltd 4,510.30 Lakme, Lifebuoy, Lux,

Pepsodent, Sunsilk

Active

Wheel, Rin,

Surf Excel,

Vim

Indian Tobacco Company Ltd 638.1 **** Kitchens of India,

Aashirvaad , Sunfeast,

Bingo

Fiama Di Wills, Vivel Di

Wills, Vivel

Marico Industries Ltd 399.8 Parachute, Saffola, Sw

eekar, Hair & Care,

Revive

Nestle India Ltd 861.0 Everyday, Fresh 'n'

Natural, Nescafe

Classic, Maggi

Procter & Gamble Hygiene and Healthcare Ltd 161.0 Whisper, Pantene Pro V,

Head & Shoulders

Ariel and

Tide

Vicks

Tata Tea Ltd 283.7 Tata Tea Premium, Tata

Tea Gold

Company Annual

sales, $m

Product segment/selective brands


Indian consumers are proving highly adaptable in terms of embracing new and innovative products. For instance, the market

acceptance of men’s fairness creams clearly demonstrates an opportunity for companies to offer new products targeting specific

customer segments.

Opportunities

• With fast-evolving lifestyles and the increasing disposable income

of urban consumers, there exists a definite opportunity for lifestyle

and high-end products.

• With more than 33 percent of the Indian consumer base present

in rural areas, the rural market will be a key growth driver for

FMCG majors planning to expand their domestic business.

• Indian consumers are highly adaptable in terms of embracing

new and innovative products. For instance, the market

acceptance of men’s fairness creams clearly demonstrates an

opportunity for companies to offer new products targeting specific

customer segments.

• Indian and multinational FMCG players can leverage India as a

strategic sourcing hub for cost-competitive product development

and manufacturing for their international markets.

18



Section Page

Disclaimer 2

Executive Summary 4

Market Research 7

Business Model 19

Marketing Plan 30


Founder Profile 43

Use of Proceeds 45

19

Business Model


Project C is an existing business located in New Delhi, India. Since 2009, the Company has distributed personal care products in India. The

Company is planning a 2015 expansion into the US market.

• Project C is an existing business located in New Delhi, India. Since 2009, the Company has distributed personal care products in India. The Company is planning a 2015 expansion into the US market. Products include detergent powder, soaps, liquids, edible salt, edible oils and textiles.

• The Company’s planned expansion will include the opening of a US Company Project C in March 2015. The US Company will export, import, distribute and retail various personal care products in USA.

• Website: XXXXX• Region of US Company registration: Dallas, Texas• Geographical focus: USA – Dallas, Texas; India – New Delhi• Target customers: Personal care product customers of all ages

in Dallas, Texas and New Delhi, India• Managing director of US Company: XXXXX

Company profile:

20

Business Model Company Profile

Project C


Operating flows between sister company Project C (India) and US company Project C. will be allocated by geographical principle. The sister

company will by responsible for the Indian market, the US company for the US market

• Project C (India) and Project C. (US) are owned by the same

individual, it qualifies under the definition of affiliate as well as

sister companies.

• Operating flows between sister company Project C (India) and US

company will be allocated by geographical principle. The sister

company will be responsible for the Indian market, the US

Company for the US market.

• US company Project C.:

• Seeking out manufacturers (reselling their

personal care products in USA and exporting

them to India)

• Managing retail and distribution business in USA

• Managing logistics in marketing campaigns

• Sister company Project C (India) :

• Seeking out manufacturers (reselling their

personal care products in India and exporting

them to USA)

• Managing distribution business in India

• Managing logistics in marketing campaigns

Functions:

21

Business Model Legal structure

Project C, India

Sister Company

Legal structure:

100%

XXXXX

Founder

Project C, USA

US Company

100%


Products for resale

22

Business Model Products

• Detergent powder

• Edible oil

• Liquor

• Bathing soap

• Auto lubricant

List of products:


Key internal functions of US Company

23

Business Model Functions

• Managing of retail store owned by

the US Company

Retail• Search for new distributors and

retail chains in USA to promote the

products from the portfolio

• Maintain and develop relationships

with wholesalers

Wholesale• Manage operations with Indian

sister company regarding logistics,

importing/exporting

• Planning of logistics schedule

• Assessment of demand for

products in both USA and India

Export/Import operations

• Management of marketing

initiatives, promoting product

portfolio to retailers and distributors

Marketing• Manage the business

• Looking for new opportunities

within new or existing markets

Business development

• Carrying out the legal, accounting,

and human resources duties

involved in the management of the

company

Other


The Company is seeking to acquire a retail store in the Dallas area

24

Business Model Functions

• Postal address: 11029 Harry Hines Blvd. Suite #C-105,

Dallas, Texas

• Price: $230,000

Target # 1

• Postal address: 2107, 2109, 2111 S 2nd Ave.,

Dallas, TX

• Price: $135,000

Target # 2

Illustrative samples of targets:

Expected payment terms: 3 months credit period after the deal


Paths to further development

25

• Organic growth - expanding number of retail and wholesale customers

• Geographical expansion into other regions:

•Exports opportunities – China, Taiwan

•Import opportunities - California

• Market development through launching of new lines of personal care

products

• Long term: grow the business via an expansion of the number of owned

retail stores

Paths to further development

Business ModelPaths to Further

Development

Business plan – Project C Private and Confidential26

Quarter 1

Hire retail store manager and

global marketing manager

Acquire retail store in Dallas

Business Model Road Map

Quarter 2 Quarter 3 Quarter 4

Establish a US Company

Lease office and warehouse in

Dallas

Select reliable freight providers

Importing current Indian products to USA

Sign distribution contracts with US

distributors & Wholesalers

Conclude agreement with US wholesalers

pertaining to distribution of products imported

from India

Arrange logistics of products for resale in

India to sister company and vice versa

Search for US products to be sold

in India

Sign distribution contracts with US

producers of personal care products

Exporting products from US to

India


Key operational flows

27

Business Model Operational Flows

Project C., USA

US Company

2

3

2

1. US subsidiaries will have the following

distribution channels of goods:

• Goods imported from India into the

US market: retail store and

wholesalers

• Goods exported from US to India

through sister company: Indian

wholesalers

2. Personal cares products will be purchased

directly from American manufacturers for

distribution in India. In India, through sister

company for distribution in USA.

3. The Company will hire reliable logistics

providers (FEDEX, UPS) for arranging delivery

of overseas goods and auto logistics on US

market.

4. Marketing activity and logistics will be

outsourced to third parties.

5. The Company will lease office and

warehouse in Dallas, Texas.

8. The Company will cooperate with different

counterparties for supporting the operating

activity with insurance, IT support, accounting

services, cleaning, maintenance, etc.

Description

Producers Landlord

Retail customers

1

5

4

Logistics

Marketing

Other

7

Producers Wholesalers

Project C

Sister company

India

Wholesalers

12


Mission of the Company is to promote high-quality but affordable personal care products worldwide

• To promote high-quality but affordable personal care products worldwideMission

Goals

• To become a reliable exporter/importer and wholesaler of personal care products in Dallas and New Delhi

• To provide high-quality personal care products in both markets

• To provide particularly cost-efficient solutions in the US market

• To hire 1 US worker in year 1

• To open US retail store in year 1

• To export personal care products produced in USA

• To expand export market to China and Taiwan in year 3

• To build a network of reliable manufacturers, wholesalers and distributors in USA

• To achieve gross revenue – $1.9m in year 5

• To retain customers by developing loyalty programs

• To provide attractive commercial terms to wholesalers

• To build and maintain relationships with personal care products associations

• To expand the business into supplementary fields (e.g. other FMCG groups)

28

Business Model Mission, Values, Goals

• Innovation

• Leadership

• Quality

• Partnership and cooperation

• Loyalty to all stakeholders

Core Values


Management summary -

strategies/objectivesList of actions

Description:

• Differentiate the products from those offered

by competitors

• Provide high-quality, affordably priced

products to US market

• Build reputation around high-quality personal

care products produced in US and the Indian

market

• Use experience and contacts of management

to build productive partner relationships

• Implement innovative marketing strategy

• Achieve synergistic effect throughout the

business, covering the wholesale and retail

segment on the US market

• Make bulk purchases for optimal price

• Be, wherever possible, cost effective and

efficient

• Diversification (product/geographical

development)

• Be socially responsible

• Lease premises in Dallas

• Recruit qualified and professional staff

• Acquire and maintain retail store in Dallas

• Obtain necessary licenses and permissions

• Cooperate with reliable manufacturers,

wholesalers and service providers

• Regularly introduce new personal care products in

both the American and the Indian markets

• Expand the business into other regions (export:

China, Taiwan, import: California)

• Improve processes continuously

• Initiate sophisticated online and offline marketing

campaign

• Train personnel continuously

• Outsource non-core activities to avoid

unnecessary costs

Objective: Differentiate the products from those offered by competitors

29

Business Model Strategies


Section Page

Disclaimer 2

Executive Summary 4

Market Research 7

Business Model 19

Marketing Plan 30


Founder Profile 43

Use of Proceeds 45

30

Marketing Plan


The Company is implementing a penetration strategy to pursue the objective of quantity maximization by means of a medium price

• Quality leadership

• Maximize quantity

• Revenue maximization

Pricing

objectives

Pricing strategy

Penetration strategy

• Penetration strategy pursues the objective of quantity maximization by means of a

low-medium price

• US market: Thanks to the low-cost options presented by Indian manufacturers, the

Company will be able to sell personal care products for 10% below market average

• Indian market: Thanks to excellent reputation of American products, the Company

will be able to sell personal care products for 15% above market average

Price options

31

Marketing Plan Pricing Strategy


POWER OF SERVICE

PROVIDERS

• Low concentration of content

providers

POWER OF BUYERS

• Low brand loyalty

• Low concentration of buyers

• High demand elasticity

• Fully informed buyers

BARRIERS TO ENTRY

• Experienced staff are required

• Investments in working capital are

required

• Relationships with producers, wholesalers

are required

• Existence of substitute products

• Low switching costs for customers

32

Medium barriers exist to entry into the American market for wholesale/retail of personal care products

Marketing Plan Five Forces Analysis

Bargaining

power of

buyers

Bargaining

power of

providers

Threat of new entrants

Threat of substitutes

COMPETITORS

High differentiation

Medium competition


Personal care products industry is growing continually in the USA, creating massive import/export opportunities

• Financial resources of the director

• Director’s extensive industry experience

• Director’s MBA will support business development

• Ability to provide products that are cost-effective for

customers in ways that current competitors’ products are not

• Existing Indian distribution network

• Direct contacts with Indian authorities for licenses

• Attractively located proposed location

• Innovative marketing plan

• Lack of brand awareness

• Start-up business

• Lack of consumer base

• Availability of substitute products

• Price pressure may lead to further decrease in margins

• High levels of competition

• Personal care products industry is growing continually and

rapidly

• US companies are keen to enter Asian markets

• Indian manufacturers are able to bring their products to US

market at extremely competitive prices

• No concentration of providers on the market

• Further service/market development is available

• Further geographical expansion is available

• No government regulation

Strengths Weaknesses

Opportunities Threats

33

Marketing Plan SWOT Analysis


Marketing objective: to make it clear to our customers that we are a reliable retail outlet for personal care products and that we are

constantly working to identify new products and develop existing lines

• To make it clear to our customers that we are a reliable retail outlet for personal care products and that we are

constantly working to identify new products and develop existing lines

Marketing

Objectives

Marketing

Strategy

Marketing

Make-Up

Differentiation

•Competitive advantage can be gained through a concerted focus on the way in which the Company’s products can be

differentiated in terms of:

• Quality

• Affordability

• Product: To build a mark of identification associated with the Business, one that reflects a high quality standard,

good reputation

• Price: Fair (below market average)

• Promotion: Due to specific character of the Business, it will be promoted via pull and push technique. Such

promotional types can be implemented via advertisement (online and offline), attendance in specialized exhibitions,

etc.

• Places: USA, India

• People: Experienced staff should be recruited

34

Marketing PlanMarketing Objectives,

Strategy, Make-Up


Marketing methods

35

Marketing plan Marketing Mix

Online advertising

Google AdWords

• Purpose: Leverage the allowance of advertising on Google and acquire

clients at a competitive CPA for the Business.

• Strategy: A standard AdWords strategy of identifying potential keywords and

then whittling said keywords down to a profitable and manageable list,

utilizing tests in ad copy, landing page design and acquisition offer will be

employed.

• Keys to Success: The keys to a successful Google AdWords launch include

the following:

Successful acceptance by Google

Ability to quickly test and respond to ad copy, landing page copy and

acquisition offers

Ability to track and determine ROI and CPA of AdWords initiatives

Industry Web portals

– Purpose: Direct and purposeful connections with prospects and clients

– Strategy: Regular placement of ads on relevant portals (such as ebay,

amazon, specialized forums)

– Key to Success: The key to a successful campaign is working on the

relevant industry portals and with the relevant associations.

Offline advertising

Traditional marketing tools (advertising in printing media, professional

events, etc. )

• Purpose: Leverage advertising to attract clients at a competitive CPA.

• Strategy: Build marketing campaign based on communication with industry

and personal relations of personnel with potential clients.

• Keys to Success: The keys to a successful traditional marketing campaign

will include the following:

Recruit qualified/well trained marketing personnel

Attendance at specialized exhibitions, industry events

Partnerships with wholesalers

Involvement in fashion activities

Advertisement in personal care magazines

Recruit qualified business developers motivated by sales commissions

Hire proactive and creative marketing personnel

Availability of resources to implement traditional marketing tools


Organizational structure

36

Business ModelOrganizational

Structure

Retail Store Manager

1 person

Mr. XXXXX

CEO

Global Marketing Manager

2 persons

• Complete store operational

requirements by scheduling and

assigning employees.

• Maintain store staff by recruiting,

selecting, orienting, and training

employees.

• Formulate pricing policies by

reviewing merchandising activities;

determining additional needed sales

promotion; authorizing clearance

sales; studying trends.

• Market merchandise by studying

advertising, sales promotion, and

display plans; analyzing operating

and financial statements for

profitability ratios.

• Secure merchandise by

implementing security systems and

measures.

• Formulate, direct and coordinate

marketing activities and policies to

promote products and services,

working with advertising and

promotion managers.

• Develop pricing strategies,

balancing firm objectives and

customer satisfaction.

• Compile lists describing product

offerings.

• Initiate market research studies or

analyze their findings.

• Manage the business

• Develop strategy of the business

• Expand the products of sister

company in the USA

• Set goals for the team and evaluate

their performance.

• Make decisions to steer the

organization to a strong financial and

competitive position

• Develop the budget and

communicate its particulars to the

staff

• Initiate and negotiate contract terms

with manufacturers, wholesalers,

sister company and service

providers

• Manage warehouse inventory

• Logistics Year 1: CEO

Year 2:Retail Store

Manager

Year 3: Global Marketing

Manager

Year 4: Accountant

Year 5: Global Marketing

Manager

Schedule of employment

Accountant

Responsibilities: keep

accounting records in day-

to day activity,

Prepare financial

statements


Section Page

Disclaimer 2

Executive Summary 4

Market Research 7

Business Model 19

Marketing Plan 30


Founder Profile 43

Use of Proceeds 45

37

Financial Projections


Assumptions used in the model

38

Financial Projections Assumptions

Revenue - Assumptions used in the model

Annual retail sales, $ 550,000

Annual increase in sales, % 7%

Gross margin earned in retail, % 30%

Annual wholesales, $ 180,000

Annual increase in wholesales, % 60%

Gross margin earned in wholesale, % 25%


Operating expenses - Assumptions used in the model

Rent costs, $ 25,000

Utility, bills, cleaning, $ 15,000

Website development, $ 3,000

IT support, $ 4,000

Staff costs in year 1, $ 35,000

Marketing budget in year 1, $ 10,000

Other expenses, $ 4,000 Annual increase in staff costs after year 3 5%

Annual increase in marketing budget, % 7%

Annual increase in operating expenses 4%


60%

40%

Structure of rent costs, %

Warehouse Office


20%

20%60%

Structure of the marketing budget, %

Online marketing - Google AdwordsOnline marketing - Industry web-portalsTradditional offline marketing tools



Assumptions used in the model

39

Financial Projections Assumptions

58%

17%

7%

10%

3%

Structure of operating expenses, %

Staff costs Rent costs

Marketing costs Utility, bills, cleaning

Website development and support Other expenses


Staff costs, $

# of staffAnnual salary,

$# of staff

Annual

salary, $# of staff

Annual

salary, $# of staff

Annual

salary, $# of staff

Annual

salary, $

Director 1 35,000 1 35,000 1 35,000 1 35,000 1 35,000

Retail store manager - - 1 30,000 1 30,000 1 30,000 1 30,000

Global marketing manager - - - - 1 30,000 1 30,000 2 60,000

Accountant - - - - - - 1 18,000 1 18,000

Total 1 35,000 2 65,000 3 95,000 4 113,000 5 143,000


Position



Sales

40

Financial Projections Sales

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Sales structure by regions, %

USA India China TaiwanSource: Management inf ormation

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Revenue structure, %

Wholesale Retail/DistributorsSource: Management inf ormation


Projected profit and loss account – the Company will become operationally profitable starting from year 1

41

Financial ProjectionsProfit and Loss

Account

Projected Profit and Loss account


Revenue 730,000 876,500 1,090,495 1,411,054 1,900,586

Cost of goods (520,000) (627,950) (786,387) (1,024,602) (1,389,392)

Gross profit 210,000 248,550 304,109 386,452 511,193

Operating expenses

Staff costs (35,000) (65,000) (95,000) (113,000) (143,000)

Rent costs (25,000) (26,000) (27,040) (28,122) (29,246)

Marketing costs (10,000) (10,700) (11,449) (12,250) (13,108)

Utility, bills, cleaning (15,000) (15,600) (16,224) (16,873) (17,548)

Website development and support (7,000) (7,280) (7,571) (7,874) (8,189)

Other expenses (4,000) (4,160) (4,326) (4,499) (4,679)

Total expenses (96,000) (128,740) (161,611) (182,618) (215,771)

EBITDA 114,000 119,810 142,498 203,834 295,423

Deprecation (15,000) (15,000) (15,000) (15,000) (15,000)

Tax @ 30% (29,700) (31,443) (38,249) (56,650) (84,127)

Net profit/(loss) 69,300 73,367 89,249 132,184 196,296

EBITDA margin, % 16% 14% 13% 14% 16%

Net profit margin, % 9% 8% 8% 9% 10%



Payback period of the Business is 4.5 years

42

Financial Projections Cash Flows

Projected Cash Flows


Receipts & Disbursements

Beginning cash 250,000 184,300 272,667 376,916 524,099

Receipts

Revenue 730,000 876,500 1,090,495 1,411,054 1,900,586

Total receipts 730,000 876,500 1,090,495 1,411,054 1,900,586

Disbursements

Acquistion of store (150,000) - - - -

Cost of goods (520,000) (627,950) (786,387) (1,024,602) (1,389,392)

Staff costs (35,000) (65,000) (95,000) (113,000) (143,000)

Rent costs (25,000) (26,000) (27,040) (28,122) (29,246)

Marketing costs (10,000) (10,700) (11,449) (12,250) (13,108)

Utility, bills, cleaning (15,000) (15,600) (16,224) (16,873) (17,548)

Website development and

support

(7,000) (7,280) (7,571) (7,874) (8,189)

Other expenses (4,000) (4,160) (4,326) (4,499) (4,679)

Tax @ 30% (29,700) (31,443) (38,249) (56,650) (84,127)

Total Disbursements (795,700) (788,133) (986,246) (1,263,870) (1,689,290)

Changes in Cash (65,700) 88,367 104,249 147,184 211,296

Ending cash 184,300 272,667 376,916 524,099 735,395

Source: M anagement information

Key performance indicators

CF(1-5 years), $ 485,395

NPV(1-5 years)*, $ 177,946

IRR, % 17%

Payback period 4.5 years

*Discounted rate 3%

Source: M anagement information


Section Page

Disclaimer 2

Executive Summary 4

Market Research 7

Business Model 19

Marketing Plan 30


Founder Profile 43

Use of Proceeds 45

43

Founder Profile


Founder profile

44

Founder Profile

Profile

• XXXX

• XXXX

• XXXX

Education

• XXXX

• XXXX

• XXXX

Certification

• XXXX

• XXXX

• XXXX

Position: Managing Director of US

Company Project C.

Address: XXXX

Phone XXXX

Email: XXXX

XXXXX

Experience

• XXXX

• XXXX

• XXXX


Section Page

Disclaimer 2

Executive Summary 4

Market Research 7

Business Model 19

Marketing Plan 30


Founder Profile 43

Use of Proceeds 45

45

Use of Proceeds


XXXXX will act as the Managing Director of the US Company Project C

46

Use of Proceeds

Initial investments, $

Item Amount


Acquistion of store 150,000

Other working capital items 10,000

Total: 250,000


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